Nitesh Nanu (Team Leader) (85 Points)
11 March 2014Hello Seniors,
Friend of mine transfer money to my account very frequently and ask me to pay his credit card bills. Most of the payments are more than 40k ...? Will these transaction affect my tax liablity or credit worthiness, because I recently applied for additional credit card from ICICI and it got rejected. Please advise.
Nitesh.
The total amount coming from him to your account can be considered as your income (gift from unrelated person) unless you are able to prove that the arrangement for receipt and payment of bills exist. You might end up paying tax on the total amount tranferred by him.
As for credit worthiness, as long as you are keeping your own credit card balance very low, pay ing your bills in time and paying timely loan installments, you should not worry. Your friend's transactions should affect his credit score.
Pl wait for more views
CAclubindia
